Analyst: Ellie Mae well-positioned for growth
Due to the Fed’s decision not to taper mortgage-backed securities purchases, one analyst suggests Ellie Mae (ELLI) is positioned for growth and is a solid investment. Seeking Alpha has more on the analyst's favorable outlook:
The stock price will continue to appreciate in the next 6 months after the release of Q3 and Q4 earnings, at which point management will have demonstrated 2013 revenue growth of 32%, Adj. EBITDA growth of 45% and FCF growth of 58% despite declines in origination volume.
A sale to a private equity sponsor could also result in significant value recognized for investors from current trading levels as well.